File
sharing services like Napster and LimeWire have in the past been
targets of the RIAA and major record labels for allegedly helping
users pirate music. More than one file sharing firm has been forced
to pay millions in damages to record labels and change their business
models.

In August of 2006, the RIAA
sued peer-to-peer file sharing service LimeWire for
copyright infringement and sought damages of $150,000 for each
illegally downloaded song. The LimeWire case went to court in
2006 only days after Kazaa agreed to a $100 million settlement for
music labels. Four years later, the record companies who were part of
that LimeWire suit in 2006 are still trying to collect on hundreds of
millions in damages for copyright infringement.

Thirteen of
the largest companies in the music industry are now looking to courts
to freeze
LimeWire assets. LimeWire founder Mark Gorton is allegedly trying
to evade paying damages by moving assets to an entity that he hopes
will be shielded from damages owed to the record
industry. Reuters reports
that among the assets Gorton has moved is 90% of the ownership stakes
in the company. The majority of the assets that have been allegedly
illegally moved are blacked out in court documents.

The court
documents read, "[Gorton and other defendants have] have engaged
in a series of fraudulent actions [to] frustrate a legal judgment in
this case."

The
plaintiffs in the case sought a permanent injunction against piracy
on LimeWire last week. Despite the legal proceedings, the RIAA and
record industry are alleging that Gorton and LimeWire have continued
their illegal ways. The plaintiffs also point out that as of the
filing every song on the Billboard Top 40 lists was available on
LimeWire.

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